Deutsche Bank India has cut the interest rate on domestic term deposits by 10-125 basis points across different maturities.
The steep cut of 125 basis points is in the maturity bucket of more than 2-3 years. It will now pay 8% annually instead of 9.25% for deposits in this category.
The minimal cut of 10 basis points was for deposits maturing between 91 days to 270 days. It will pay 7% annually for deposits in these maturity buckets.
It hiked rate by 200 basis for deposits in 7-14 days bracket. The revised rates are with effect from October 4, Deutsche bank said in statement today.
It, however, kept peak rate unchanged at 9.5%. It offers this rate for five year-deposits.
The foreign Bank with branches in India had deposits of Rs 16,842 crore at end of March 2012 up from Rs 14,646 crore a year ago, according to RBI data.
Its cost of funds rose to from 2.36% in 2010-11 to 3.14% in 2011-12. However, it is less than the aggregate cost of funds for foreign banks operating India which is pegged at 3.83% for 2011-12.
